Toyota Motor will reduce vehicle production for Middle Eastern markets by nearly 40,000 units over the next two months, the Japanese automaker confirmed Thursday, citing logistical challenges stemming from the ongoing crisis in the Strait of Hormuz.
The production cuts will primarily affect the Land Cruiser SUV, a popular vehicle in the region, according to sources familiar with the matter. The decision comes as tensions escalate following joint military strikes by the United States and Israel on Iran in February, and subsequent Iranian retaliation, including threats to disrupt shipping through the vital waterway.
The Strait of Hormuz, located between Oman and the UAE on one side and Iran on the other, is a critical chokepoint for global energy trade. Iran’s Islamic Revolutionary Guard Corps (IRGC) has claimed the strait is “closed,” threatening to set ablaze any vessels attempting passage. While the U.S. Military’s Central Command (CENTCOM) has asserted the strait remains open, the heightened rhetoric and demonstrated Iranian military exercises in the area have created significant uncertainty for international shipping.
On Monday, an IRGC senior official stated that any ships attempting to transit the Strait would be targeted, according to Iranian state media. The IRGC similarly claimed to have attacked an oil tanker allegedly linked to the U.S. In the strait, though details remain contested.
The crisis began on February 28th, 2026, following U.S.-Israeli strikes on Iran, which included the assassination of Iran’s supreme leader, Ali Khamenei. Iran has responded with a series of attacks and threats, escalating the geopolitical and economic disruption. Four seafarers have been killed and three tankers damaged as of early March 2026, according to available reports.
While Iran’s ability to completely close the Strait of Hormuz has been questioned, the threats and increased military presence have prompted companies like Toyota to reassess their logistical operations. The reduction in production reflects the challenges of navigating the region and ensuring the safe delivery of vehicles to customers.
As of Thursday, March 5th, 2026, no official negotiations are underway to de-escalate the situation in the Strait of Hormuz, and Iranian officials continue to maintain their stance regarding the waterway’s closure. The impact on global oil prices and shipping routes remains a significant concern for international markets.
